ArcelorMittal seals long-term Liberia deal to Anchor $3.5B investment
ArcelorMittal (NYSE:MT) and the Government of Liberia have signed an amended Mineral Development Agreement (MDA), extending the steelmaker’s mining rights to 2050.
The agreement, which includes a 25-year renewal option, paves the way for a massive expansion of iron ore production and infrastructure in the West African nation.
Under the terms of the deal, ArcelorMittal will make a $200 million payment to the Liberian government.
The amendment provides the fiscal and legal certainty required for a $1.8 billion expansion project, bringing the company’s total investment in Liberia to $3.5 billion.
The centerpiece of this phase is a state-of-the-art concentrator plant that will shift operations toward higher-value, high-grade ore.
The expansion is set to quadruple output to 20 million tonnes per annum (mtpa) by 2026, up from historic levels of approximately 5 mtpa.
Furthermore, the agreement reserves rail capacity for a potential future expansion to 30 mtpa, pending the results of ongoing feasibility studies.
The deal also addresses the strategic 245-kilometer rail corridor.
While ArcelorMittal maintains reserved capacity for its ramp-up, the agreement includes provisions for multi-user access.
Other commercial users seeking to utilize the line between the Tokadeh mines and the Port of Buchanan will be required to fund additional expansions to accommodate their specific transport needs.
